TOPICS DISCUSSED IN THIS MARKET BRIEFING:

• European stock markets boosted by hope of treatment
• Wall Street driven to record highs
• Chart of the day – USD/CAD : a double bottom

EUROPEAN STOCK MARKETS BOOSTED BY HOPE OF TREATMENT

European stock markets started the week with a sharp rise on Monday, with the latest news on the coronavirus research front providing a new reason to buy for investors, with new records on Wall Street.

As in Asia and then America, investors welcomed the announcement of the US Food and Drug Administration's (FDA) emergency green light for a blood plasma-based treatment for COVID-19 and the Financial Times article that the Trump administration is considering an expedited procedure for the vaccine candidate developed by AstraZeneca and the University of Oxford, which could therefore be available before the US presidential election on November 3.

This information revives the hope that the medical and political authorities will take control of the pandemic in the coming months, whereas previous sessions had been marked, among other things, by signs of a resurgence of the health crisis.

Thus, the CAC 40 index gained 2.28% to 5,007.89 points. The Footsie gained 1.71% and the DAX 30 advanced 2.36%.    

WALL STREET DRIVEN TO RECORD HIGHS

Wall Street ended higher on Monday with once again records for the S&P-500 and the Nasdaq, supported by hopes of discovering a vaccine against COVID-19.

The trend was fueled on Monday by new information on a treatment and vaccine against Covid-19, which gave a boost to the sectors most affected on the stock market by the pandemic.

Wall Street was also driven on Monday by the rise of Apple, which gained 1.2% after having already taken more than 5% on Friday. The company, which is now worth more than $2 trillion on the New York Stock Exchange, will soon cut its stock by four, a deal meant to make it cheaper per unit for shareholders holding shares On Monday at the close.

Later in the week investors will be watching closely for a speech that U.S. Central Bank Chairman Jerome Powell is scheduled to deliver Thursday as part of the annual meeting of major central bankers that usually takes place in Jackson Hole but will take place virtually this year.

As a result, the Dow Jones, rose 1.35% to 27,930.33 points. The Nasdaq advanced 0.60% and the S&P-500 took 1.00%.

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Otherpoints on financial market news

• forex

The dollar is down a bit against other major currencies, as renewed risk appetite deprives it of its safe-haven appeal, allowing the euro to rise to $1.18.

The greenback, however, remains above its recent more than two-year low against the single currency, which rose to 1.1965 last Tuesday.

• petroleum

The oil market is benefiting not only from the optimism linked to coronavirus research but also from the announced arrival on the Gulf of Mexico of a hurricane and a tropical storm, which has shut down more than half of the region's production capacity.

The Brent gained 1.53% to $45.03 a barrel and US light crude WTI 0.9% to $42.72.

Economic calendar of the day:

Find the full  economic calendar to know all the economic events to come.

CHART OF THE DAY – USD/CAD: A DOUBLE BOTTOM

After taking a real dip from 1.3640, the Dollar finally found support to bounce back. On this 4-hour data chart, the pair is trading in a downtrend within a channel. However, the market could regain height in the event of a break in the upper limit.

First of all, prices form a chartist figure of reversal with a "double bottom", so the crossing of the neck line at 1.3230 was to lead to a bullish acceleration. The theoretical objective would therefore be to seek resistance towards 1.3330.

On the other hand, in case of failure, on the upper terminal of the channel, the pair may consolidate within a range between 1.3230 and 1.3140. So, only the exit of one of the two terminals will accompany the momentum to come.

Read more about financial market news by checking out my previous Market Briefing.

Twitter @Joris Zanna

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